The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1887-07-15
$l,6OO,OOO
OMAHA
WATER WORKS
Six Per Cent.
First Consolidated Mortgage Bonds.
DENOMINATION $1,000 EACH.
Principal due July 1sf, 1907. Coupous
payable january and July Ist
PAYABLE AT THE OFFICE OF THE FARMERS
LOAN AND TRUST COMPANY, n. r., TRUSTEE
FOR THE BoNDHoLDERs.
ISSUED BY
The American Water Works Co.
The American Water Works Co.

The undersigned offer for sale and recommend
for investment, at IO3 and interest, subject
20 advance without notice, the above des-
crlbed 81 GOO, 600 bonds OF the American Water
Works Company, secured by mortgage upon the
franchise and pr operty of the Water Works at
Omaha, Nebraska.
These bonds are part Of an authorized loan Of
100000, of which s40O, 900 are placed In trust
with The Farmers Loan and Trust Company, New
York, for the purpose Of retiring an equal amount
OF old bonds now outstanding as soon as they can
be redeemed, and the remaining $4,000, 900 are
deposited In trust with the sameCompany to be IS
sued after January LIST. 1888, as may be requlr-
ed to defray the actual cash cost Of extensions Of
water mains and other additions to the plant
For the present, however, the entire indebtedness
OF the Company viii be only $4,000. 900, upon
which the annual interest charge will amount TO
$4,000.
The gross income OF the Company for the en-
suing year on the basis Of present applications
and contracts will exceed 100000, and IL the
average rate Of increase for the past three years
is continued the basis of earnings on July list
1888. viii not be less than $4,000 per annum'
but there is every indication that the percentage
OF increase this year viii be larger than ever be-
fore, the Company having added eo4 new con-
sumers during the six months ending July list,
1887, as compared with $50 for the year 1886.
The operating expenses for the ensuing year
will approximate s45, 600 and after paying inter
est and all other charges there will be a surplus
OF more than 5000. exclusive of any increase
in earnings beyond existing contracts
By express provision of the mortgage no part OF
the 81, 100000 bonds In trust can be issued un-
less the net income is more than sufficient TO pay
the interest thereon in addition to bonds preyi
ously issued, and then only to pay actual cost Of
extension, not exceeding 100000 In any one
month.
The present population Of Omaha is not less
than 100000, an increase Of 10000 since 1880
when the works were constructed, and this re-
markable growth has not only required the Com
pany 10 make large extensions every year, but
will necessitate the removal Of tie pumping sta
tlon to place some five miles distant from the
present location, where a sufficient area for .more
settling basins can be obtained.
Next to those at Kansas City the Water Works
at Omaha are the most extensive under private
management In the United States. The import
ance OF Omaha as a commercial centre is shown
by the heavy bank exchanges at the Clearing
House. the same being In excess OF those Of CIeve-
land, indianapolis, Columbus or Denver and
nearly equal TO Detroit aud Minneapolis, and
"
cept Boston and Providence, and greater than the
combinedclearings Of the banks at Portland, Me-,
Worcester and Springfield, Massachusetts,.
The bonds are now being engraved TO meet the
requirements Of the New York Stock Exchange,
and as soon as practicable, application win be
made to admit them to dealings at that exchange,
and when placed upon the list they viii not only
have ready market but win doubtless steadily
advance in value.
Pending the delivery Of engraved bonds on or
before September LIST, 1887, certificates In de
nomination OF $4,000 each win be issued by The
Farmers Loan and Trust Company of New York,
which viii have the same force and security as
the bonds, and for smaller amounts the under
signed will give temporary receipts.
We commend these bonds as a conservative In
vestment for trust funds. Copies of the mortgage
and other papers may be seen at our respective
offices.